AIRASIA X Bhd (AAX) significant progress on its turnaround plan, lower cost structure as well as higher contribution from air cargo business has led Public Investment Bank Bhd (PublicInvest) to revise its forecast on the cash strapped carrier.

Its analyst Danny Oh stated that AAX had been significantly impacted by the Covid-19 pandemic as travel and border restrictions were imposed around the world, leading to a significant fall in demand for international air travel.

As a result, AAX has grounded most of its fleet since March 2020 which is facing severe liquidity constraints to meet debt and other financial commitments and has been faced with possible liquidation.

To transform and reset its business, AAX initiated a turnaround plan which consists of a proposed debt restructuring, proposed corporate restructuring and proposed fundraising, to attain a sustainable debt structure and pave way for fresh capital to restart its operations when international borders reopen. Read more